Isarescu expects 8% economic growth at yearend

Romania’s economic growth will likely be 8%, said the governor of National Bank of Romania (BNR), Mugur Isarescu. In first nine months, Romania’s gross domestic product rose 8.9%.

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Isarescu said the current account deficit would remain one of the main problems of Romanian economy, being an after-effect of the fast-paced development of the country in the previous years. Calculated by including the reinvested profit, the payment balance deficit will probably climb to 13% of GDP at the end of this year, according to Isarescu’s forecasts. Last year, Romania’s current account deficit reached 14% of GDP.

Budget deficit will probably exceed 3% threshold in 2009, if the legislators will not take any measure to rightsize this unbalance, the governor added.

“Budget deficit will likely exceed 3% of GDP threshold in 2008 and in the coming year, if the proper measures to correct fail to be implemented. Instead of multiannual budget, we had several years with several budget plans. The rectifications carried out have optimistically spurred the budget”, Isarescu mentioned.

After first 11 months this year, the budget deficit reached nearly 3% of GDP and for 2009, the budget blueprint approved by the actual government targets 2% budget deficit.